Sep. 6, 2015, 3:33 PM
- Seeking a tie-up with General Motors (NYSE:GM) is a "high priority," Fiat Chrysler (NYSE:FCAU) boss Sergio Marchionne declared, adding that a merger with GM would "be the best possible strategic alternative for us and for them."
- Despite upping the deal's significance, Marchionne declined to discuss the next steps FCA might take or whether the automaker would pursue a hostile bid.
- Previously: Fiat Chrysler would be the smaller fish in potential GM deal (Sep. 04 2015)
- Previously: Sergio Marchionne fires up Fiat-GM merger talk again (Aug. 31 2015)
Sep. 5, 2015, 12:02 PM
- News in the automobile industry this week continues to indicate seismic changes are coming.
- The Silicon Valley factor: A deeper commitment by Apple and Google in the automobile sector is widely anticipated, although an all-in bet on the manufacturing side is still considered a reach. Key acquisitions, partnerships, or joint ventures in software, self-driving technology, and infotainment systems could sort out the winners from the losers. German players BMW (OTCPK:BAMXY) and Mercedes-Benz (OTCPK:DDAIF) could be in the mix.
- The Sergio factor: Though the Fiat Chrysler Automobiles (NYSE:FCAU) CEO continues to make some bold projections on the powerful merger synergies a tie-up with General Motors (NYSE:GM) would create, his math works for other combinations within the industry as well. Nissan (OTCPK:NSANY), Tata Motors (NYSE:TTM), Honda (NYSE:HMC), and Volvo (OTCPK:GELYF) are each struggling in various markets.
- The Tesla factor: Tesla Motors (NASDAQ:TSLA) has engaged in a war of words with Toyota (NYSE:TM) in the electric vs. hydrogen debate. The EV automaker is also in a race with General Motors and Nissan over developing a mass-market EV with the driving range and sticker price to sell at scale. There's also been a tug-of-war over employees with Silicon Valley counterpart Apple. With so many enemies, some analysts think Tesla needs more friends in the space. Who has the ~$40B-$50B to buy out Elon or the moxie to strike a strategic partnership?
- Looking for a wildcard? Sony (NYSE:SNE) CEO Kazuo Hirai told the Financial Times this week that his company would absolutely partner with an automobile company if a deal makes sense.
Jun. 25, 2015, 3:00 AM
- Despite calls for consolidation in the auto industry, Fiat Chrysler Automobiles (NYSE:FCAU) CEO Sergio Marchionne said his company is a long way from lobbying General Motors (NYSE:GM) to the negotiating table.
- The company's previous merger proposal to GM Chief Executive Mary Barra was rebuffed.
- Asked if he would consider an option of going hostile on the automaker, Marchionne said only that those players who kept wasting capital were acting in that manner.
Jun. 18, 2015, 2:41 AM
- General Motors (NYSE:GM) and Fiat Chrysler Automobiles (NYSEARCA:FCA) have turned to investment banks for help to deal with a stand-off as the latter seeks to force a merger with its Detroit-based rival, Reuters reports.
- Earlier this year, GM's board rebuffed a merger proposal from the Italian-American carmaker and Chief Executive Mary Barra said last week she had no interest in a combination.
- Barra's rejection has not stopped FCA boss Sergio Marchionne, who is lobbying GM investors to support his case.
- Previously: Fiat Chrysler CEO seeks activist help for GM merger (Jun. 09 2015)
Jun. 9, 2015, 2:18 AM
- Fiat Chrysler Automobiles' (NYSE:FCAU) Chief Executive Sergio Marchionne is reaching out to hedge funds and other potential allies to prod General Motors (NYSE:GM) into a merger, WSJ reports.
- Marchionne has been emboldened by recent successes of activist investors at GM and sees them as a means to consolidate the fragmented auto industry.
- So far, GM has resisted all of Fiat Chrysler's entreaties, including a merger appeal to Chief Executive Mary Barra earlier this year.
- Previously: GM passes on merger offer from Fiat Chrysler (May. 23 2015)
Jan. 6, 2015, 8:20 AM
- The spinoff of Ferrari could give Fiat Chrysler Automobiles (NYSE:FCAU) enough breathing room to seek a merger partner, according to auto industry analysts.
- The rising cost of developing clean cars in Europe and the U.S. sets the stage for automakers to join forces through mergers and extended partnerships.
- "Eventually it must happen," notes FCA chief Sergio Marchionne on the topic of mega-mergers.
- No company is too big to be ruled out of the merger discussions due to the benefits of scaling investment costs and matching strengths/weaknesses in Europe, Latin America, China, and the U.S, note insiders.
- Automakers: GM, F, TM, FCAU, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:FUJHY, OTCPK:MMTOF, OTCPK:PEUGF, OTC:RNSDF, TTM, KNDI. OTCPK:SZKMY, OTCPK:MZDAY.
Sep. 22, 2013, 3:31 AM
Sep. 11, 2013, 3:27 AM
- The Canadian and Ontario governments are selling 30M common shares in GM (GM) in a block trade to Bank of America (BAC) and RBC Capital Markets (RY) in a deal valued at around $1.1B.
- The transaction is part of the governments' plan to sell the holdings in the automaker that they received as part of its bailout in 2009. They will be left with over 110M GM common shares and over 16.1M preferred shares.
Feb. 6, 2013, 4:35 AM
GM (GM) and partner SAIC Motors are reportedly interested in acquiring ailing car makers in China, as if the U.S. company doesn't have enough problems turning around loss-making operations in Europe. Still, GM wants to boost sales in China by 75% to 5M by 2015, and an acquisition could one way to achieve this. The government might be supportive, as it wants to consolidate a car industry that suffers from overcapacity.| Feb. 6, 2013, 4:35 AM | 2 Comments
Nov. 21, 2012, 5:11 PM
Ally Financial confirms it has reached agreement to sell its operations in Europe and Latin America, as well as its 40% share in a China joint venture, to General Motors (GM) for ~$4.2B. The combined operations in Europe and Latin America represented ~$16.1B in assets at the end of Q3 2012.| Nov. 21, 2012, 5:11 PM | 1 Comment
Nov. 9, 2012, 6:36 PMAlly Financial is looking to sell its auto financing units in Europe and Latin America for around $4B - and General Motors (GM) is the lead bidder if they come as a package, Reuters reports. The deal could come down next week and Ally is still reportedly looking at various separate bids for the two operations. | Nov. 9, 2012, 6:36 PM | 1 Comment
Oct. 22, 2012, 6:10 AM
GM (GM) makes an informal offer to buy the 17% of its Korean unit held by state-run Korea Development Bank, which has a veto over decision-making. A deal would boost GM's stake to 94% in the operations - which provide an important production base - and allow the car maker to restructure the unit. Separately, GM and Peugeot plan to announce a joint purchasing agreement soon, but dismiss union claims that they intend to build cars in Brazil.| Oct. 22, 2012, 6:10 AM | 1 Comment
Oct. 5, 2012, 7:35 AM
"Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe," says company exec Steve Girsky, reiterating the brand isn't for sale. Earlier, an Italian newspaper reported, talks to sell the unit to Fiat were set to restart.| Oct. 5, 2012, 7:35 AM | 1 Comment
Oct. 5, 2012, 5:37 AM
Sep. 19, 2012, 4:46 PMGM is preparing to bid this week for Ally Financial's auto-lending operations in Europe and Latin America but isn’t pursuing Ally’s Canadian operations or its Mexican auto insurer, Bloomberg reports. An acquisition of the units would more than double the assets of GM Financial. | Sep. 19, 2012, 4:46 PM | 1 Comment
Apr. 29, 2012, 5:17 AMGM plans to start negotiations next month about buying a 10% stake in Isuzu Motors (ISUZY.PK) as part of an agreement to jointly develop and sell commercial vehicles in Asia and Latin America, Nikkei reports. Any agreement might lead to Toyota (TM) selling its 5.9% holding in Isuzu, and would follow GM's link-up with Peugeot. | Apr. 29, 2012, 5:17 AM | 3 Comments